Obtaining early-stage financing for technology entrepreneurship: reassessing the demand-side perspective

Abstract

New technology-based firms face particular challenges in obtaining early-stage financing to develop and grow their business. Seen from the supply-side, high levels of uncertainty make investors reluctant and create a liability related to the supply of financing to these ventures. This introductory article reassesses the demand-side perspective to financing of technology entrepreneurship by considering how entrepreneurs can improve their chances of obtaining external financing. We propose that the perceptions and preferences of the entrepreneurs, the content and presentation of the business case, the networks and the relationships of the entrepreneurs, and the process of obtaining financing are issues of key importance for understanding how entrepreneurs can enhance the ‘investment readiness’ of their ventures. We synthesize the papers in this special issue and their contributions to research from the demand-side perspective. Moreover, we outline prospective areas for future research and implications for practice.

Keywords:

• demand-side
• early-stage financing
• investment readiness
• special issue
• technology entrepreneurship

Acknowledgements

We would like to thank the authors for their contributions and the referees for their constructive feedback which were of great importance for developing the articles. Special thanks to Colin Mason for his support during the entire process of making the special issue.